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2.Real GDP per person has been growing in the world and SA
Explain scarcity, choice and opportunity cost with regard economy zee.
mechanism? Why does it fail to deliver economic growth in the long run? What is the solution of
the Solow model for consumption per person in the steady-state?
A firm in a perfectly competitive market in the short run, faces a price of $20 per unit of its output. It is producing 200 units per week and employing 40 workers. The last unit of output takes 32 percent of one worker's week to produce. The wage rate is $50 per week and fixed costs (per week) are $1000.
i) Calculate MC, AC and profit at the present level of output.
ii) Is the firm maximizing its profit?
iii) Suppose that the price falls to $16 and fixed costs rise to $1,500, should the firm close down?
Explain the relationship between the effectiveness of monetary policy and the interest elasticity of money demand. Will monetary policy be more or less effective the higher the interest elasticity of money demand? Now explain the relationship between fiscal policy and the interest elasticity of money demand. Why do the two relationships differ?
the implied supply curve. Give an example of something that would shift
this supply curve, and briefly explain your reasoning. Would a change in the price of pizza
shift this supply curve
Suppose you are the manager of a theater. You currently charge the same admission price to all customers, regardless of age. You hire an economist to determine the price elasticity of demand for admissions by age, and he tells you that at the current price, demand by adults is inelastic and demand by children is elastic. If you want to increase your total revenue by adjusting admission prices, how should they be adjusted
A) Trade unions act as monopolistic suppliers of labour.
B) Labour markets are sometimes monopolistic, meaning there is only one major employer.
C) Employers and employees usually have perfect knowledge about the labour market conditions in which they operate.
D) The labour market is a segmented market.
